Iran Banks On Taxes, Not Oil, To Fuel 2015-16 Budget

With oil export revenue set to stay subdued Iran is looking to expand its tax base.

Iran’s budget for the year beginning 21 March will rely mostly on “tax revenues and sales of government bonds to replace reduced oil revenues,” Vice President for Strategic Planning Mohammad Baqer Nobakht says.

Oil prices have more than halved to around $50/B over the past six months whilst sanctions-hit crude exports are stuck at around 1.1mn b/d, compared to around 2.3mn b/d before the mid-2012 ramp-up of sanctions. In addition, sanctions on financial transfers mean Iran has difficulty getting paid even for these volumes. (CONTINUED - 1094 WORDS)